Determinants of Members’ Participation Decision in Cooperatives Teff Market: The Case of Damot Gale District of Wolaita Zone, Ethiopia

Abstract

When the issue of economic growth and development of the country is raised, one has to take into account the performance of the smallholder farmers. Reducing the challenges they are facing and utilizing their potentials can help to accelerate the agricultural sector and economic development of the country as a whole. Agricultural cooperatives are an ideal means for self-reliance, higher productivity level and promotion of agricultural development. Therefore, the major concern of this study is empirically identifying determinants of members’ participation decision and level of participation in cooperatives teff market: the case of Damot Gale District of Wolaita Zone, Ethiopia.  Both primary and secondary data were taken for this study. A multi-stage sampling procedure was employed to select three agricultural cooperatives and a total of 140 sample respondents taken from Damot Gale District of Wolaita Zone. Primary data pertaining to the years 2018 was collected from selected respondents through interview Schedule. Of the total respondents, about 62.8% and 37.2% were participants and non- participants in agricultural cooperatives in teff market respectively. Secondary data of the cooperatives was also taken from different journals, reviewing literature and articles. Descriptive statistics were used to compare the socio-economic, services rendered by the cooperatives and other institutional characteristics of the participants and non-participants of the cooperative marketing of teff. Testing differences between two samples were done using T-test and Chi-square test. Heckman two stage selection econometric models were employed to identify the participation decision and level of participation of teff in the one District. A total of 13 explanatory variables were included in the model in which six variables were found to be significant. Of these, six explanatory variables namely age, education of household, number of years of farmer experience, off-farm income in birr, household’s land size and yield of teff were found to influence the participation decision and level of participation of teff market positively. Implications of this study are improving the continuous educating and training of members in cooperative marketing increasing the productivity and specialization of the farmers.

Keywords: Cooperative marketing, Household decision, Heckman, Wolaita.

DOI: 10.7176/JESD/10-15-03

Publication date: August 31^st 2019